WWNC – The $44 billion acquisition of Twitter Inc (TWTR.N) by Elon Musk is the subject of a federal inquiry, the social media firm revealed in a court document made public on Thursday.
Twitter claimed that it had been requesting Musk’s attorneys to reveal their correspondence with federal authorities for months but they had refused, so Twitter petitioned a Delaware judge to compel the attorneys to do so.
Musk’s lawyers gave a “privilege log” detailing the papers to be withheld from discovery in late September. A slide presentation for the Federal Trade Commission and a draft email to the U.S. Securities and Exchange Commission were both mentioned in the log, according to Twitter.
The business stated in the court document that “this game of ‘hide the ball’ must end.”
A request for comment was not immediately answered by Musk’s legal counsel.
The Delaware judge delayed the litigation on October 6 to allow Twitter and Musk to finalize the acquisition agreement, and that same day Twitter filed its court request. View More
The SEC has raised concerns about Musk’s remarks regarding the purchase of Twitter. The SEC questioned Musk in April about whether his 9% Twitter investment statement was late and why it suggested he intended to be a passive investor. Later, Musk amended the declaration to reflect his active investor status.